Real-Life Millionaires Dish On How They Spend Their Money

Everybody loves a Millionaire and everyone not yet a millionaire, wishes to be one. To be a millionaire is an alluring goal with dreams of mansions, luxury cars, yachts, and fancy dinners galore. But what exactly is a ‘Millionaire’ and how do we define one? The term “millionaire” means any individual whose net worth is $1 million or more. (Net Worth is the value of everything a person owns, minus all debts). Neither personal income nor business revenue nor appraised home value, alone can create a millionaire

Spotting a millionaire is no mean task as most do not look the part. A lot of people, who look as if they are rolling in dollars, probably don’t. Many rich-looking people cultivate a lifestyle and appear to be rich as keeping up appearances requires huge money investments. Many individuals with negative net worth may drive Range Rovers and live in a McMansion while the actual millionaire lives in a three-bedroom house and drives a Hyundai.

Money does matter much less

Millionaires grow their money and do not spend hard-earned money on luxury vacations, clothing, houses, and cars, as after a certain point, money rarely matters much. Earning the first million is brutal but with systems in place, money replicates itself automatically, with time mattering much more. Between juggling business and family obligations, too many annoying practices take up too much time and we need to find ways to reduce or eliminate time wastefully spent. Not the typical millionaire! If you track down some millionaires and ask how they spend money, their responses are surprising! Many millionaires however donate generous sums to various non-profit organizations.

Millionaires Spend on Maximizing their Time

As time is more valuable than money, many spend thousands of dollars on full-body laser hair removal and permanent makeup, to save many more hours each week on personal grooming. Bobbi Rebell Kaufman (How to Be a Financial Grownupspends) spends money to maximize quality time spent with her kids, by spending on extra tutoring and private lessons for her kids. With limited time to spend, doing something ‘active’ like bike riding in the park is fun and rewarding. Scott Alan Turner spends money to have time away from his kids and spend money on babysitters as parenting tests your limits no matter how much money you make. At a restaurant hot food is enjoyable but with twin toddlers who need their food cut and decide to use the bathroom when your entree arrives, you quickly discover the joys of tasting a cold hamburger. Robert Farrington (The College Investor) maximizes his time by grocery shopping on Amazon Fresh. With two kids and the time spent loading them into the car, getting out at the store, shopping (without any meltdowns), then loading up to come home is a waste of time. Amazon Fresh prices are on par with most retailers with a cost attached for the convenience which is a small price if groceries are conveniently delivered at the doorstep when needed.

Millionaires believe in frugal travel

Michelle Schroeder-Gardner (Making Sense of Cents) spends lavishly on RVing full-time with her husband and two dogs, after selling their house in 2015 and thereafter travelling. Being a minimalist saves time but permits savoring the better things in life by exploring the outdoors and spending more time with family rather than pursue material pleasures. Jim Cirillo (Reinvention Revolution) spends money on travel and attends trade shows beyond his expertise as it opens up his mind to understand himself, people and trends in the world, and assists his investments. Doug Nordman spends money on slow travel as he spends not much money, but prefers a lot more time to spend, seeing the world while he still can. Some enjoy spending money to have their extended family join them while they see the world. Joe Olson (Adventuring Along) spends money to secure more time with friends and family to deepen relationships; he rented a large house in Bali last Christmas for a family get-together, and this summer this was repeated in British Columbia. Spending money to get them to visit and vacation and spend time together is just great.

Millionaires rarely spend money frivolously and wastefully

Most self-made millionaires are just everyday folk. While plenty of the idle, rich people choose to spend money on expensive cars, gigantic houses, and lavish luxury hotels, most real-life millionairesuse money as a tool to maximize their time-lines, deepen relationships, and see the world, just like everybody else.